Previously, brand owners could file a trademark complaint with Google to prevent third-party ads from being returned alongside the results of a search of a trademarked name, like Louis Vuitton or Prada.
The decision will be effective September 14 and extends to the rest of Europe changes that were made in Britain and Ireland in 2008. In the US and Canada, Google has been using the policy since 2004.
The company’s move stems from a decision by the European Court of Justice in March. The court broadly ruled that Google had respected trademark law by allowing advertisers to bid for keywords corresponding to third-party trademarks.
Brand owners, led by the French luxury goods company LVMH Moët Hennessy Louis Vuitton, had argued that only they or authorised sites should be able to buy and use such trademarked terms in searches, so as to protect their brand value. They now face the prospect of having the ads of third-parties offering their products being displayed in search results.
Trademark owners who feel that third-party ads confuse users as to the origin of the goods and services will still be able to file complaints with Google, and the company would take down the ads if it agreed that they were confusing.
Google Communication Manger for the region Ben Novick, stressed that the company would continue banning ads for counterfeit goods. “We work with multiple brands to identify counterfeit goods,” he said. Google’s clients are now being informed of the changes. Legal experts have said that the European ruling stopped short of the definitive precedent that Google and brand owners alike had sought.
Instead, it contained caveats that could result in a new flurry of lawsuits over the sale of ‘sponsored links’ generated by Google searches. Google argues that selling brand names as ad keywords to multiple bidders helps consumers because it allows them to find product reviews, sellers of second-hand goods and other information. It stressed that the new policy would not extend to the actual display text in search findings.